Regulation
We have a “pretty clear” set of rules
In an interview at the Bloomberg Invest Summit 2024, Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), outlined his position on crypto regulation.
He noted that many entities in the crypto space do not adhere to these laws. This presents significant risks for investors and the financial system as a whole.
SEC’s Gary Gensler Highlights ‘False Decentralization’ of Crypto Platforms
Gensler stressed the need for compliance with applicable U.S. securities laws, the Securities Act of 1933, within the crypto industry. According to him, securities laws are designed to protect investors and maintain fair, orderly and efficient markets.
“And we have a pretty clear set of rules. There is nothing inconsistent between crypto securities and securities laws,” he said. declared.
Learn more: Who is Gary Gensler? Everything you need to know about the president of the SEC
Gensler highlighted compliance issues within the crypto industry. He noted that many tokens and platforms failing to comply with securities laws, thus not providing the necessary information to investors. He believes this lack of compliance poses risks to the public.
He further emphasized that moving abroad don’t apologize crypto companies to comply with U.S. securities laws. Gensler emphasized the importance of proper disclosure and compliance, regardless of location.
“If they are actually telling the truth about it, if they are making the disclosures and are properly registered, and then if the intermediaries are operating within the law and without conflicts,” he said.
Additionally, Gensler pointed out the false decentralization of many platforms. He believes that these platforms are in reality very centralized and operate with conflicts of interest.
“The law does not allow you to trade against your clients and operate a so-called stock exchange, trade in front of your clients and possibly take investments in an investment contract or securitythen list and bring up the list,” he explained.
Gensler’s stance on the implementation of securities law in the crypto sector is intriguing, especially given calls from prominent industry figures for regulatory clarity. For example, in May, Charles Hoskinson, co-founder of Ethereum (ETH) and Cardano (ADA), described the idea of regulating crypto under current securities law as “absurd”. Hoskinson’s comments reflect a broader debate within the industry regarding the suitability of existing securities laws to the characteristics of cryptocurrencies.
“Cryptocurrencies can be commodities, securities, currencies, loyalty points, non-fungible tokens. All at the same time. So how do we regulate assets when things can change on a daily, weekly or monthly basis? In fact, circumstances can change over time,” Hoskinson explain.
During the interview, Gensler also clarified the SEC’s position on crypto exchange-traded funds (ETFs). The approval of spot exchange-traded products is a more recent development. These products provide the investing public with regulated options for crypto investing, contrasting with the non-compliant platforms on which most crypto trading takes place.
Learn more: Crypto regulation: what are the advantages and disadvantages?
Additionally, he discussed Ethereum spot ETF approval. Gensler emphasized that the approval process involves rigorous review to ensure they comply with all regulatory requirements, thereby providing a safer investment option for the public.
“I don’t know the timing, but everything is going well, and it’s really about asset managers making full disclosure so that these registration statements can be effective and these lawyers know what it is. is,” he said.
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